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Patagonia Provisions presentation
- 1. Patagonia Provisions Jessica Ampel Abraham Hano Maia Taylor Tyler Hall Fred Nelson
- 2. $460 billion
- 3. Bulk Industry Revenue Projections Bulk Industry Revenue Projections Percentage Growth Time
- 4. To make $50 million in revenue in 2022 while leaving a minimal environmental footprint Goal
- 5. ● Moving into the online bulk industry by offering discounted prices for bulk consumption ○ Expand our online market ○ Introducing new products Our Strategy
- 6. 1. Target Market 2. Industry Trends 3. Competitive Advantage 4. Products 5. Marketing/Promotion 6. Financials Agenda
- 7. ● Upper Class → $100,000+ ● Families are bulk buyers ● Higher education rates Upper Class Population
- 8. Industry Trend Online Grocery Market $121 Billion Entire Grocery Market $608 Billion
- 9. Competition Current Competition: ● Amazon ● Whole Foods ● FreshDirect ● Safeway ● Walmart Competition with our strategy: ● Boxed ● Amazon ● Jet
- 10. ● Convenience ● No membership fees ● Environmental consciousness ○ Suppliers who share our mission ● 94% of consumers would switch brands to support a cause Competitive Advantage
- 11. Current Products
- 12. ● Dried Mangos ● Oasis Lager New Products to Introduce OasisLager
- 13. ● Use website to sell Long Root Ale and Oasis Lager ● Become distributor for other eco-friendly breweries in the future Online Beer Delivery Service
- 14. ● Currently collecting 10% of beer revenue from licensing deal ● Will collect 17% of beer revenue from licensing and distribution deal Partnership
- 16. ● More than 1 billion people use Facebook daily ● ~72% of users in our target demographic Social Media Promotion
- 17. Promotions 18.7 million Spotify users in target demographic 12 million Hulu subscribers in target demographic
- 21. Facebook Post Example Enjoy time with family using your Provisions bulk shipment! #IncredibleBulkMovement
- 22. Financials
- 23. Launch Plan Year 1 Existing: Salmon, Buffalo, Long Root Ale Year 2 New: Dried Mango Existing:Fruit + Nut Bars Year 3 New: Oasis Lager Existing: Breakfast and Savory Grains Year 4 Continue Increasing Bulk Production
- 25. (Loss) Income from Operations -$1,230,469 $17,297,280 -5,610,000
- 26. $266,112,000
- 27. $460 billion
- 28. Thank you for your attention!
- 29. Fruit and Nut Bars: 48-pack: $75 Buffalo Jerky 20-pack: $160 Long Root Ale 12 pints: $30 24 pint: $50 Breakfast and Savory Grains 2 lb bag: $35 Family-Size (3 lb bag): $50 Trail Grains 2 lb bag: $20 Family Size (3lb bag): Salmon 6 pouches: $30 12 pouches: $50 24 pouches: $90 Dried Mango 1lb bag: $14 Family Size (3lb bag): $35 Long Root Ale and Oasis Lager 12 pints: $30 24 pint: $50 Pricing
- 30. Hulu Costs $900,000 per year $75,000 per month $70 per 1000 users for two ads Spotify Costs $2,805,000 for all five years $561,000 per annum $46,750 per month $100 for 10,000 users Pricing for Hulu and Spotify
Notas do Editor
- This is our presentation for our winning strategy for PP
- https://www.ibisworld.com/industry-trends/market-research-reports/retail-trade/general-merchandise-stores/warehouse-clubs-supercenters.html Capitalize The Warehouse Club and Superstore industry is worth $460 billion according to First Research research and data base, and is projected to have an upward trend of growth in the next 5 years. It’s been increasing the last couple years. People value bulk purchases right now. Comes from the Warehouse and Superstores Industry overview in First Research. This information is based on the economy because warehouse and club stores are heavily influenced by the economic environment, whether it is positive or negative. Consumer spending is affected by the economic environment, and the bulk industry is affected by how much people are willing to spend.
- Families buy in bulk because... Upper class person is defined as earning of $100,000 in annual income, and these are families that we know are buying their groceries in bulk. In order to align our target market with our mission and vision, we found that education level is a strong indicator for environmental awareness and consciousness and over 53% of the Upper Class has received a bachelor’s degree or higher. All of these parts add up to show that the demographic of the bulk industry is very consistent with our target demographic. https://www.infoscout.co/retailer/costco Majority of Costco shoppers make $80,000 and above per year https://infoscout.co/retailer/bjs_wholesale Majority of BJ’s shoppers make $80,000 and above per year as well http://www.investopedia.com/financial-edge/0912/which-income-class-are-you.aspx three-person household income between $100,000 and $350,000, has grown from 12.9% of the population in 1979 to 29.4% in 2014. It found that people with higher incomes saw their earnings grow faster than those with lower incomes. http://lib2.skidmore.edu.lib2.skidmore.edu:2048/tmp/The_Global_State_of_Online_Grocery_in_2017.pdf http://www.retaildive.com/news/costco-bjs-sams-club-why-millennials-love-clubbing/436676/ http://climatecommunication.yale.edu/publications/analysis-of-a-119-country-survey-predicts-global-climate-change-awareness/- education is the single strongest predictor of climate change awareness http://www.pewsocialtrends.org/2012/08/27/yes-the-rich-are-different/ Education is also closely linked to social class. Among those who identify as being upper or upper-middle class, 53% have a bachelor’s degree or more.
- Fix graph An industry trend that we are going to capitalize on with our new strategy is that by … Now, this is a significant market share because the grocery industry is worth $608 billion, so with a 20% share, the online grocery market would be worth $121 billion by 2025. By selling our bulk products solely online, we will not only be entering a viable industry, but also a growing one. https://www.ibisworld.com/industry-trends/market-research-reports/retail-trade/food-beverage-stores/supermarkets-grocery-stores.html Grocery Industry is worth $608 billion currently. https://www.ibisworld.com/industry-trends/specialized-market-research-reports/online-retail/food-beverage-sales/online-grocery-sales.html Online grocery industry is currently worth $13 billion. Going to be worth close to $121 billion by 2025 Within the grocery shopping market, we’re moving into the bulk industry.
- Now I’m going to talk about our competition with and without our strategy. Without our strategy, our competition are companies that sell groceries online, and then with our new strategy, our competitors become places like Boxed, Amazon, and Jet much more slim because of our unique business model. There are barely any companies selling groceries in bulk online the way that we are. https://www.outsideonline.com/2201581/big-business-resist We only sell our plan Calls Provisions “boutiquey” with current strategy. Also said that if Provisions becomes gigantic, i.e. selling in bulk, that it would actually be good for the industry and environment. Try to get government subsidies?
- I spoke earlier about how our target demographic cares about the environemnt, so we know that our environmentally conscious and regenerative suppliers will attract the upper class to buy our products. With our convenience, environmental stewardship, and exclusive products and suppliers, our business model will differentiate us from other online bulk grocery sellers. Talk about convenience with regards to how much time people will save and how they can use that time to spend with their families. With regards to our environmental conciousness, I spoke earlier about how our target demographic cares about the environment, so we know that our environental stewardship will draw customers in. Also, we have completely exclusive suppliers that align with our goals to help save the environement. For example, one of our suppliers in Nicaragua that Fred will elaborate more on uses only no till farming as well as solar panels to fuel their manufacturing. To fuel our environmental consciousness, we found that with the correct marketing, 94% of consumers would actually switch brands to support a cause, which we know we can capitalize on since we are so clear about our environmental mission. With convenience, environmental stewardship, and exclusive products and suppliers, our business model differentiates us from other online grocery bulk sellers. https://www.huffingtonpost.com/auren-kaplan/94-of-consumers-will-swit_b_1126628.html A recently released study by cause marketing firm Cone LLC announced that an astounding 94 percent of consumers would switch brands if one carried a cause and another did not. No one else has our suppliers. They’re very exclusive. https://www.forbes.com/sites/marymeehan/2016/12/15/the-top-trends-shaping-business-for-2017/#60a97bd16a8a
- Maybe add in that idea about the breweries and the water systems. Granola pic- https://pioneerwoman.files.wordpress.com/2016/01/homemade-granola-08.jpg Mango pics are from patagonia provisions website -based on survey monkey-beverages (beer) was the most in demand product for bulk and the other products were too Talk about why you picked these products. Say in your script the sources. Mango industry: http://www.fao.org/3/a-ar709e.pdf https://nuts.com/driedfruit/mango/organic.html?gclid=CjwKCAjwmqHPBRBQEiwAOvbR80oMdEw2w4h1mtWda_1qVRQZNJHzgBIoX1g5sR06ry5Fy3Tc2Po_vBoCJQ8QAvD_BwE https://vinepair.com/articles/can-versus-bottle-environment/ Talks about the pros of aluminum cans Granola pic- https://www.google.com/search?biw=1422&bih=745&tbm=isch&sa=1&q=granola&oq=granola&gs_l=psy-ab.3..0i67k1j0j0i67k1j0j0i67k1j0l5.13752.14782.0.14891.7.7.0.0.0.0.90.570.7.7.0....0...1.1.64.psy-ab..0.7.570....0.1ciELlgopBM#imgrc=OL_jAtfFLZAg6M: http://goodbeerhunting.com/sightlines/2016/11/23/online-booze-sales-industry-expected-to-hit-614-million-in-2016 the population of drinking aged people, particularly those younger consumers who have fully embraced technology, is expanding.
- http://goodbeerhunting.com/sightlines/2016/11/23/online-booze-sales-industry-expected-to-hit-614-million-in-2016 Ship to all states except Alabama, Delaware, Kentucky, Mississippi, Pennsylvania, Rhode Island, South Dakota, Utah, and Vermont.
- http://goodbeerhunting.com/sightlines/2016/11/23/online-booze-sales-industry-expected-to-hit-614-million-in-2016
- Were going to use facebook as our social media platform because our target consumers(parents) are present on these sites. Costs No costs One post a day One post every two days-what their doing right now
- Were going to use facebook as our social media platform because our target consumers(parents) are present on these sites. Costs No costs One post a day One post every two days-what their doing right now
- tyler is going to talk to you about how we’re using these platforms https://expandedramblings.com/index.php/hulu-statistics/ http://www.businessinsider.com/pandora-vs-spotify-total-subscribers-chart-2017-6 Costs Hulu Minimum of 2 ad campaigns $25-30 per 1,000 viewers 12 million users are in our demographic 4.5 million spent in 5 years ($900,000 each year) Costs Spotify $100 for 10,000 users on Spotify $0.01 per each user $1.3 million for one year for once 18.7 million active in our target market $561,000 per annum $2,805,000 for all five years We will not spend very minimal amounts of money on creating these advertisements because we are going to encourage people to tag us in their posts on Facebook using our bulk products. The top 1 post with the most likes will get to be featured in our ads. Involves our consumers while also reducing costs. Blue Cross Blue Shield does that. 18.7 million people in our target demographic are using spotify $100 for 10,000 users on Spotify OR $0.01 per each user 18 percent of Americans reported using Spotify monthly, while 15 percent said they used this service weekly $35 per promotion 12 million of Hulu’s subscribers are within our target market 32 million of Hulu’s subscribers view content with ads
- https://expandedramblings.com/index.php/hulu-statistics/ http://www.businessinsider.com/pandora-vs-spotify-total-subscribers-chart-2017-6 Costs Hulu Minimum of 2 ad campaigns $25-30 per 1,000 viewers 12 million users are in our demographic 4.5 million spent in 5 years ($900,000 each year) Costs Spotify $100 for 10,000 users on Spotify $0.01 per each user $1.3 million for one year for once 18.7 million active in our target market $561,000 per annum $2,805,000 for all five years We will not spend very minimal amounts of money on creating these advertisements because we are going to encourage people to tag us in their posts on Facebook using our bulk products. The top 1 post with the most likes will get to be featured in our ads. Involves our consumers while also reducing costs. Blue Cross Blue Shield does that. 18.7 million people in our target demographic are using spotify $100 for 10,000 users on Spotify OR $0.01 per each user 18 percent of Americans reported using Spotify monthly, while 15 percent said they used this service weekly $35 per promotion 12 million of Hulu’s subscribers are within our target market 32 million of Hulu’s subscribers view content with ads
- https://expandedramblings.com/index.php/hulu-statistics/ http://www.businessinsider.com/pandora-vs-spotify-total-subscribers-chart-2017-6 Costs Hulu Minimum of 2 ad campaigns $25-30 per 1,000 viewers 12 million users are in our demographic 4.5 million spent in 5 years ($900,000 each year) Costs Spotify $100 for 10,000 users on Spotify $0.01 per each user $1.3 million for one year for once 18.7 million active in our target market $561,000 per annum $2,805,000 for all five years We will not spend very minimal amounts of money on creating these advertisements because we are going to encourage people to tag us in their posts on Facebook using our bulk products. The top 1 post with the most likes will get to be featured in our ads. Involves our consumers while also reducing costs. Blue Cross Blue Shield does that. 18.7 million people in our target demographic are using spotify $100 for 10,000 users on Spotify OR $0.01 per each user 18 percent of Americans reported using Spotify monthly, while 15 percent said they used this service weekly $35 per promotion 12 million of Hulu’s subscribers are within our target market 32 million of Hulu’s subscribers view content with ads
- https://expandedramblings.com/index.php/hulu-statistics/ http://www.businessinsider.com/pandora-vs-spotify-total-subscribers-chart-2017-6 Costs Hulu Minimum of 2 ad campaigns $25-30 per 1,000 viewers 12 million users are in our demographic 4.5 million spent in 5 years ($900,000 each year) Costs Spotify $100 for 10,000 users on Spotify $0.01 per each user $1.3 million for one year for once 18.7 million active in our target market $561,000 per annum $2,805,000 for all five years We will not spend very minimal amounts of money on creating these advertisements because we are going to encourage people to tag us in their posts on Facebook using our bulk products. The top 1 post with the most likes will get to be featured in our ads. Involves our consumers while also reducing costs. Blue Cross Blue Shield does that. 18.7 million people in our target demographic are using spotify $100 for 10,000 users on Spotify OR $0.01 per each user 18 percent of Americans reported using Spotify monthly, while 15 percent said they used this service weekly $35 per promotion 12 million of Hulu’s subscribers are within our target market 32 million of Hulu’s subscribers view content with ads
- https://expandedramblings.com/index.php/hulu-statistics/ http://www.businessinsider.com/pandora-vs-spotify-total-subscribers-chart-2017-6 Costs Hulu Minimum of 2 ad campaigns $25-30 per 1,000 viewers 12 million users are in our demographic 4.5 million spent in 5 years ($900,000 each year) Costs Spotify $100 for 10,000 users on Spotify $0.01 per each user $1.3 million for one year for once 18.7 million active in our target market $561,000 per annum $2,805,000 for all five years We will not spend very minimal amounts of money on creating these advertisements because we are going to encourage people to tag us in their posts on Facebook using our bulk products. The top 1 post with the most likes will get to be featured in our ads. Involves our consumers while also reducing costs. Blue Cross Blue Shield does that. 18.7 million people in our target demographic are using spotify $100 for 10,000 users on Spotify OR $0.01 per each user 18 percent of Americans reported using Spotify monthly, while 15 percent said they used this service weekly $35 per promotion 12 million of Hulu’s subscribers are within our target market 32 million of Hulu’s subscribers view content with ads
- Breakfast grain pricing: 24 x 6.50= $156 (original pricing), with our pricing/strategy buying a 24-pack saves you $0.75 per pouch 24 x 5.75= $138 SAVE $18 Family size saves packaging, less operating costs, less packaging = better for the environment
- Mango industry: http://www.fao.org/3/a-ar709e.pdf https://nuts.com/driedfruit/mango/organic.html?gclid=CjwKCAjwmqHPBRBQEiwAOvbR80oMdEw2w4h1mtWda_1qVRQZNJHzgBIoX1g5sR06ry5Fy3Tc2Po_vBoCJQ8QAvD_BwE https://vinepair.com/articles/can-versus-bottle-environment/ Talks about the pros of aluminum cans Granola pic- https://www.google.com/search?biw=1422&bih=745&tbm=isch&sa=1&q=granola&oq=granola&gs_l=psy-ab.3..0i67k1j0j0i67k1j0j0i67k1j0l5.13752.14782.0.14891.7.7.0.0.0.0.90.570.7.7.0....0...1.1.64.psy-ab..0.7.570....0.1ciELlgopBM#imgrc=OL_jAtfFLZAg6M: http://goodbeerhunting.com/sightlines/2016/11/23/online-booze-sales-industry-expected-to-hit-614-million-in-2016 the population of drinking aged people, particularly those younger consumers who have fully embraced technology, is expanding.
- Change spelling error https://www.business2community.com/strategy/7-tips-to-save-cost-on-bulk-packaging-0491754#P6I58R5bXyW0pjcA.97
- Change colors of lines-add key? Know average growth rate. https://www.business2community.com/strategy/7-tips-to-save-cost-on-bulk-packaging-0491754#P6I58R5bXyW0pjcA.97
- Breakfast grain pricing: 24 x 6.50= $156 (original pricing), with our pricing/strategy buying a 24-pack saves you $0.75 per pouch 24 x 5.75= $138 SAVE $18 Family size saves packaging, less operating costs, less packaging = better for the environment
- Breakfast grain pricing: 24 x 6.50= $156 (original pricing), with our pricing/strategy buying a 24-pack saves you $0.75 per pouch 24 x 5.75= $138 SAVE $18 Family size saves packaging, less operating costs, less packaging = better for the environment
- Breakfast grain pricing: 24 x 6.50= $156 (original pricing), with our pricing/strategy buying a 24-pack saves you $0.75 per pouch 24 x 5.75= $138 SAVE $18 Family size saves packaging, less operating costs, less packaging = better for the environment
- Breakfast grain pricing: 24 x 6.50= $156 (original pricing), with our pricing/strategy buying a 24-pack saves you $0.75 per pouch 24 x 5.75= $138 SAVE $18 Family size saves packaging, less operating costs, less packaging = better for the environment